Wall Street Controllers Sold Out the U.S. to China, Which is Loaded with $1.3 Trillion in US Treasury Bonds
Central Banker Liars, New Currency, Fatal Errors, Psycho War (Excerpt)
Legitimate income from industry was exported out of the United States, and reliance upon asset bubbles was the result, and eating home equity. The Wall Street executives are locked and loaded with huge gold accounts, hidden in off-shore accounts and even in Carlyle Group accounts. Pressure is building for the United States to lose its own currency. For three decades the US has exported inflation, but next it will rapidly import inflation. This is the key which when turned will open the door to the Third World. The US nation has already been de-industrialized. The process began in the 1980 decade with the outsourcing to the Pacific Rim. It culminated in the Chinese Renaissance after bargaining for the Most Favored Nation status. When the New Scheiss Dollar is launched, expect sudden price inflation to surge, expect sudden supply shortages to appear, and expect sudden violence to break out. The result will be acute shortages in food at supermarkets, acute shortages in fuel at service stations, and acute shortage in cash at ATM machines. The US population will not finally suffer a rude awakening until the vast broad painful shortages arrive and meet them face to face. If a 30% devaluation comes as part of the initial currency launch, then the (10/7) factor dictates a ripe 43% price inflation hit from the import channels. For reference to an actual model, see Venezuela for a peek into the US future of disorder, chaos, violence, and severe disruption. They struggle with 100% annual price inflation and deep shortage of staples, amidst almost daily demonstrations. - Jim_Willie_CB, June 3, 2014)April 9, 2014
Jim_Willie_CB - The fatal errors in US banking and economic policy could fill a book.
The Jackass has harped on the concept for other eight years on a regular and frequent basis, pointing out the merger of state with big corporations (led by banks), pointing out the permitted financial fraud and banker welfare, even General Motors welfare, pointing out the economic effect, pointing out the war levers used to guarantee supply, and pointing out the systemic failure it has caused.
Not 10% of Americans comprehend what fascism is, but 30% of the nation would qualify easily to serve as Nazi Youth Group leaders, possibly without realization of the group functions. Witness the honor guards and flag ceremonies at sporting events, including an occasional fighter jet flyover. This is not healthy, but rather a slippery path to a dark place. The bigger question is whether the US nation will recognize the Third World when it approaches with all its nasty trappings.
The fatal errors are many. They cannot be fully detailed. The seminal original sin was breaking off the Gold Standard by Nixon. In my book, the move was probably the second half of the arrangement to have Kennedy removed, followed by a clever deft move to install Kissinger. He created the Petro-Dollar mechanisms, by pushing for a quadruple in the crude oil price, then instituting the Petro Surplus Recycle plan, having the Saudis run OPEC, forcing nations to accumulate USTreasurys in their banking system.
The Petro-Dollar defacto standard replaced the formal Gold Standard. The kicker benefit was that Arab nations and Iran were able to fill their coffers, buy fancy yachts, build casinos in the desert, erect oversized palaces to stroke their egos, arrange $million allowances for royal kids, and kick back profits to the USMilitary industrial complex, the monster to be fed.
The Petro-Dollar has permitted the USEconomy to live off a credit card, without direct consequence to abused debt. The Petro-Dollar has permitted the USMilitary to seek out and conquer, to effect the hearts and minds, and to plunder.
The creditor nations of the world realize their role as the victims who finance the field operations and covert operations. That all changed with the narcotics industry born in the Cambodia Triangle, advanced in the Kosovo depot, and accelerated in the Afghan poppy fields. The USGovt security agencies have had independent income for over three decades. Witness the first Langley coup of a foreign state in Ukraine. The untold story is the conflict between the USMilitary and the Langley Mercenaries. Look later to find the Odessa Ltd split, just like in the 1950 birth for the old Nazi Germany war machine enterprise.
Many are the errors.
The US corporate titans responded to both environmental strictures and labor union demands, by relocating many operations in the Pacific Rim. The US domestic income source was displaced. The Americans sought to rely upon asset bubbles for income. They spent home equity on consumerism objectives, but in fairness often for necessities.
The Greenspan Fed contributed significantly to the wrecked state. They moved away from valid monetary policy whereby money supply increase was to match economic growth. Instead, following the Rubin directive, the Mr Magoo cutout ordered the monetary aggregate to follow the Consumer Price Inflation index in the most egregious central bank error in modern history to that date. The falsified CPI enabled unchecked increases in money released within the system. Debt growth also exploded to create a USEconomy that resembled a cross between a hedge fund and a Ponzi scheme. The Irrational Exuberance speech was his disclaimer, a weak statement easily seen through by the Jackass and many others.
The promoted strategy of easy money being stimulus is patently false. The low interest rates actually act like a wet blanket, reducing income to savers, but keeping interest payments down. Unfortunately twice as much volume exists in accounts due interest income payouts, versus loan portfolios due interest from monthly service payments.
To the contrary, easy money is a debt bomb and capital acid. The climax error was likely more a grand betrayal, granting China the Most Favored Nation status. The purpose stayed hidden for many years, to lease their gold by Wall Street firms. The result has been a loss of US legitimate income, during a period of profound capital investment in China by Western firms. The Western Govts idiotically complained about Chinese trade surpluses, when two thirds of their surpluses came from subsidiaries of Western firms with heavy blessed foreign direct investment. The result has been debt writedowns that take capital equipment and other fixed assets into the mothballs, while hyper inflation has killed capital directly. The result is systemic failure for the US nation, which can no longer finance its debt.
The mindset of the nation has been that to promote recovery, the people must be given money to put in their pockets for spending purposes. Wrong again, since what the people need is jobs, removal of heavy corporate taxation, and clearing of malodorous federal regulatory obstacles.
The US nation has lost its way on what capitalism is. It embraces socialism, with all its ravages. It endorses austerity, which is nothing more than poison pills. It permits war machine aggression as foreign policy for both infrastructure alteration and currency defense.
The nation can rebound if the capital structures are renovated and permitted to grow from seed, namely capital formation. This has become a foreign concept in the nation once considered the cradle of capitalism. The former communist nations have become the capitalism adopters, while the former capitalist nation leader has adopted national socialism (aka nazi). The United States will undergo re-industrialization again, but by the Chinese carpet baggers. They are loaded with $1.3 trillion in USTreasury Bonds.
Look at the new businesses that have been hatched in the last decade, as they litter the Wall Street landscape. They are truly pathetic. See NetFlix and FaceBook and Groupon and LinkeIn, even Twitter and Monster. The list is long and unimpressive. These are disk drive racks and elaborate living room couches and kitchen boxes. These are not corporations with deep capital investment and useful products flowing, intellectual capital exploited, value added from talented work forces, and enduring contributions to both economy and society.
Look at the new national initiatives.
There was the Green Revolution sponsored by Obama, but it proved to be a sham. See Solyndra and its fraudulent loans, the favorite personal Obama portfolio investment. There should have been a freight firm IPO to reward Obama ventures on gun running to Mexico. It could have become a good movement, for solar, for wind, for waves. Instead a fraudulent field, just like the mortgage weeded field.
The new national initiative is the shale oil and fracking gas strategy, which is both short-lived and destructive. The shale oil revolution is a fleeting flash in the pan, requiring a Ponzi growth in new wells to compensate for extremely rapid wellhead depletion. The fracking gas movement punctures the natural tables, and thus contaminates the water supply, catering to the Halliburton monopoly on fracking chemicals. Not even witnessing evidence of tens of thousands of water pools on fire can stop this administration, hellbent on destruction.
Even the Obamacare national health insurance plan has hidden malignant tumor-like motives. See the slush funds to cronies, where money vanished. See the triple cost versus touted by officials. See the required financial statements that enable tracking other assets wished to remain in shadows. See the eventual ID chip implanted on the upper left arm. Feel the part-time nightmare response to the labor market.
The disasters of the Obama Admin will be the stuff of history books. What Bush Jr Admin did to wreck the USEconomy from aggressive war costs, the Obama Admin complemented with wreckage of the USEconomy from internal caustic seeds.
The US nation is filled with households that cover the spectrum. Many are very unhappy about the current path taken by the nation. Many are suddenly insecure with the popular inflation hedge in the home equity having vanished. Many are suddenly insecure also from the poor labor market, and the plethora of substandard jobs. Gone are the engineering jobs and foremen posts that used to pay well, or even bond issuer posts. They are replaced by fast food marts, cashier posts, retail sales, customer service, freight movers, secretaries, night watchmen, janitors, and cleaning staff.
The nation has a new disease uncovered in many households, if the scattered reports from Hat Trick Letter clients reflects the masses. The Jackass refers to it as Arrogant Ignorance, which separates the ordinary bright educated masses from the Intellectuals. Take an intelligent person, remove the scientific method of working with verifiable evidence, add on assumptions embedded in defiance, sprinkle with some righteous indignation, add some old fashioned anger and insult, and you arrive at Arrogant Ignorance.
This disease is rampant, and divides families. The Contempt Before Investigation, with harsh dismissal of actively thinking people, is a horrendous mental rotten apple all too often seen on the table. Both factors are ripe in the Jackass own original family, although the new adopted Latina families are far more open minded and promising. Let it be known that my father, although not in agreement with many perceptions and beliefs, has supported the newsletter, in particular with 2004 seed capital to accompany the intellectual sweat equity and shoestring needs. If professional workers used these weak mental methods in the work place, the would fail on a widespread basis, lose and look bad. The national condition is not being examined rationally, but rather emotionally and against weird psychological frameworks built in flimsy defense.
In the last three years, a few colleagues and the Jackass have investigated reasons why people do not investigate or show interest in the decayed financial structures and depleted economy. We examine why they choose to remain uninformed and in the dark. This is a new intriguing aspect of human psychology to me, and as fascinating as disturbing. Here are some conclusions after a couple of years:
a) We conclude that some people have over-arching belief systems for their lives that are sacrosanct and not challenged.These justifications and phenomena are not comprehensive or exhaustive. They are a work in progress, which go together with the Stockholm Syndrome and the Warsaw Effect. These two address the emotional integration between victim and assailant, and the denial of threat while trapped within walls. However, integrate the four described items and something more perverse emerges. What appears is defense mechanisms for a failed nation and delusional defeated masses. Too many people have succumbed to the pressures, and remain hidden in their little anal caves.
b) We conclude that some people are so frightened by certain threats, that they wish to ignore them.
c) We conclude that some people wish to believe the leaders, laws, and system protect them, another sacred belief.
d) We conclude that some people are successful in their work, and deeply invested in the current system, that they do not wish to alter the system in which they succeed.
Hats off to Gonzalo Lira for his book "A Secret History of the American Crash" which is a docu-drama work in the year 2020 set in Los Angeles. It provides a real life look on the streets and offices at where the broken Untied States is heading, based upon systemic failure, economic ruin, and society impact. From Lira's blog:
What are the scary parts of this novel? Or let me rephrase: What events described in this novel would scare the crap out of a reader in 2014? Well, there’s the issue of blatant, open anti-Semitism among the characters in the year 2020, and how Jewish people are openly persecuted under the guise of “networker targetting”. There’s the issue of women in the year 2020 being practically chattel, and how “plural marriages” are used to simultaneously keep women down and maintain social control. There’s the issue of total surveillance, up to and including all citizens having their DNA, picture and fingerprints taken, and every computer and electronic device being “tethered” to an owner—so that the government can quickly find out who is not “in compliance”. Then there are the concentration camps—excuse me, the “Detention and Processing Facilities”—where Americans who are “non-compliant” and have therefore lost their “American Privileges” are held, without recourse to the law or the courts because they haven’t been properly arrested—they have received “Administrative Detention”, and thus cannot contact a lawyer or a judge.Related:
Gotta make it clear how in the year 2020, there’s no revolution or protest against the injustices and outrages of the government because (a) the fight has been literally bred out of people, and (b) people’s source of food depends on being “in compliance” with the government, so they are exceedingly wary of pissing off the G-Man.
In 2020, all drugs are legal, and their use is encouraged by the government, especially weed. Parts of the classified laws of the Domestic Pacification and Normalization Program (DOPA-Norm) of 2017 explicitly state that “the Federal Government should encourage the use of cannabis as a social lubircant and soporific. Don’t forget to include that somewhere. (Should weed be encouraged in the Detainee Camps as well? Think about it.)
How to describe people’s acquiescence? A lot of it has to do with the Capitol Bombing, and the rise of the so-called “insider threat”. The authorities are crazy about “insider threats”, gotta make that clear. But people’s acquiescence—their allowing the authorities to do bad things—has to do with having been slowly conditioned over the years. Think all those lock-down drills in schools.
World War III, the Islamic State, and the New World Order into Which We Entered After 9/11/2001 (Richard Maybury)
Jim_Willie_CB (excerpt from May 7, 2014):
Saudi Arabia is critical, and it will flip eastward. It already has. The nation has a notable recent history in serving as the linchpin of the Petro-Dollar itself, leading the ragtag OPEC nations. The British created the nation from a bedouin desert into a kingdom, with a stroke of a pen. The big lie maintained for ten years is the excess capacity of Saudi oil output. There is no excess capacity, as the nation is heavily depleted. The Chinese have entered the tent. Huge projects are well along like the vast petro-chemical facility in the west by the Red Sea. More huge projects are planned. The recent Chinese missile deal, complete with parade, should serve as clear indicator of the next chapter. The Chinese will operate the new protectorate role, thus to expect more Chinese naval vessels in the criss-crossed waters. The Chinese have already captured the commercial fronts, not so much with big energy projects, but with instead the archipelago of retail centers and distribution points. With the UAE and Saudi, the Gulf region was conquered years ago.
Enter Iran, often mentioned by the Jackass in the context of the Paradigm Shift eastward. The OPEC oil cartel under Saudi guidance will be replaced by the NatGas Coop under Russian guidance. The network of Iran gas pipelines will be strategically important. The Saudis are suddenly expendable. The USDollar has an insolvent foundation and the Saudi gold has been dislodged from its London moorings. The Iranians have two big allies in Russia and China, kept under their wings during the entire painful sanctions period. Suddenly the Saudis are expendable. Watch with amazement how the Western press will vilify the Saudis, while painting a picture of Iran having been reformed and cleaned up. The Chinese are making great strides as the new global diplomat. The Beijing leaders have dictated that the Iran conflict with the US/UK be brought to an end. Find a way, those are the marching orders. Lastly, notice the new Saudi Royal succession announced.
The announcement made by Russia, China, and the Saudis to settle oil and gas trade in Yuan and Ruble currency will blow the doors off the global financial system. The pact will center upon energy trade payment system as core, but will serve a general purpose for trade. The resulting effect might trigger a US-based derivative meltdown, possibly even a Japanese meltdown. The BRICS nations will start central bank function, converting USTBonds to gold. The number of BRICS Associate nations will approach one hundred nations, such minor players like Vietnam, Bolivia, and Indonesia taking part, along with the stalwart Iran. The BRICS Development Fund will offer continued cover as a crisis reserve fund to rescue financial arenas in the Emerging Markets, and offer some aid in deficit coverage. Apart from infrastructure project fund, look for hidden gold conversion of toxic paper. The best part is, all the events would indicate a return to Gold Standard, without the standard announced. The Jackass is just thinking outside the box.
Since 2008 and the Lehman failure (including Fannie Mae adoption and AIG assumption), this has been a financial war with a monetary battle front. The motive toward solution has been nowhere, since liquidation of big broken banks has never been an option.
Jim_Willie_CB (excerpt from June 3, 2014):
The tipping point was the Lehman kill in Sept 2008, following the subprime mortgage collapse. (Forecasted in advance by the Hat Trick Letter). It was a death event for the US banking structure, which should have forced liquidation of all Wall Street firms. Then came the Financial Accounting Standards Board relaxation of rules in April 2009, which still permits the big US banks to declare their assets at any value they wish. They hide grotesque insolvency. Their liquidation would not happen, instead zombies walked.The USDollar support has been military for a long time, but implicitly so. In recent months, the military support has been more overt and obvious. It will be full of intrigue to see if Putin can keep the battles on the financial front, while freezing the military front in a standoff, even if a messy standoff. The military battles can happen, as long as they are isolated. There will be many confrontations like on the Black Sea in the last couple weeks. The Russia Air Force offered a demonstration to the USNavy of their advance radar jamming equipment. The USNaval battlefield was left blind and without targeting systems. The USDollar Regime loses the global battle on the financial front, since it has no legs.
The next tipping point was the Federal Reserve announcing a move toward the Zero Percent Interest Rate (ZIRP) in early 2009. (Forecasted in advance by the Hat Trick Letter). The next tipping point was the Federal Reserve announcing the bond monetization initiative (QE) in early 2012. (Forecasted in advance by the HTLetter). The next tipping point was Taper Talk removed in September 2013, an obvious declaration of QE to Infinity. (Forecasted in advance by the HTLetter). The most recent tipping points are the Syria War and the Ukraine War to obstruct the Russian Energy Monopoly in the European energy market. Further signals abound, but are more effectively hidden. Cyprus, Syria, and Ukraine all have Gazprom obstruction in common. The defense of the USDollar has taken historically unprecedented turns.
The role played by the Saudis has become clear. They recently had a parade to show off their new Chinese missiles, a bold step. This follows an economic conference in March held in Beijing between the two nations, to settle on large scale projects, cross border investments, political alignment of the minds, and some charity offerings. To be clear, as forecasted in the last few months, the Saudis have divorced the United States. The Saudis will next crawl under the Chinese wing. In vengeance, the Saudis will be treated with some terrorism, while the London bankers continue to steal their gold. The Riyadh thwarted terrorist incident is just the beginning. It bore a Langley signature.
The Jackass forecast is that the USDollar is not going to tank, not going to suffer a rapid decline. The financial structure is very complicated. Failed financial structures across the Western world will require a large pile of USDollars to settle broken derivative contracts. The USGovt will be forced to launch a domestic Dollar, which deserves the name Scheiss Dollar. It will be seriously devaluated in a sequence of steps. Expect severe problems inside the USEconomy. Refer to price inflation (imported after 30 years), supply chain disruption (uncertainty on short-term currency issues), and violence (at gasoline stations, food markets, and ATM cash centers).
Expect to see the mass of paper currencies suffer severe problems from direct dependence upon central bank inflation machinery and special bond patches. Expect to see a table full of new gold-backed currencies arrive like in a parade.
Refer to new Yuan, new Ruble, new Gulf Dinar, new Nordic Euro, and possibly new Norway Krone. The new US Republic Dollar will be the joker in the deck, the toilet paper item on the elite counter top. The new currencies will all be gold-backed and form a global critical mass, which might include about 60% to 65% of global trade. They will slowly bury all the present day paper currencies. In order to comprehend the next chapter, the observer and the analyst and the student must think in terms of the new currencies. Russia and China each in possession of over 20,000 tons of gold, ready to back new currencies. The United States has an empty vault and a sprawling military which no longer can boast Full Spectrum Dominance.
Jim_Willie_CB (excerpt from June 3, 2014):
Nowhere has the betrayal of the US nation been more stark and ugly as with the granting of Most Favored Nation status to China in 1999. The story told is shallow and insipid, if not deceptive and loaded with treason. Reducing the cost of import items is a very shallow empty argument, with no long-term benefit, since legitimate income from industry was exported out of the United States. Reliance upon asset bubbles was the result, and eating home equity. It took time to come to light, but the MFN grant was done with a hidden backend lease of a sizeable portion of the Mao Era gold horde. Follow the collateral trails. My guess is it involved about 2000 metric tons.
The Chinese demanded collateral, like any prudent organization would. They received it in two forms, in the Jackass best estimation, as a result of the sequence of events which have followed. First, the Wall Street and Federal Reserve hive pledged the JPMorgan Chase headquarter complex as collateral, maybe other buildings as well. But the big enchilada was how the Chinese were given by Wall Street a securitized sovereign bond (like a mortgage bond) on the IRS income tax stream. Such derivatives are regular menu items for the Exchange Stabilization Fund managed by the USDept Treasury, with big arm assists by JPMorgan’s Chief Investment Office.
Such derivatives hold together the USTreasury Bond complex, which China has been actively involved with. They were the primary beneficiary to Operation Twist in 2012, and probably designed it, then force fed it down the USFed throats. When the USEconomy suffered consecutive 3% and 4% recessions every year in 2008, 2009, 2010, 2011, 2012, 2013, the brutal impact was a default on the income tax bond derivative. Chronic recessions do that. The officially stated 1% or 2% GDP growth must be reduced by the inflation lie. For several years, the true CPI has been 7% to 9%. Inflation is called growth, according to Reich Finance. Subtract a chunk off every officially stated GDP, as the USEconomy is mired in a deep recession if not depression.
The visible part of the default is seen in the distressed sale (more like asset seizure) of the JPMorgan HQ for the paltry price of $725 million to a state-owned Chinese property conglomerate. The stated value at the time was $1.9 billion, but informed sources indicate the entire multi-purpose property complex to be worth easily $3 or $4 billion. They grabbed the gold vault too, and the conference center. The vault is connected to the USFed gold vaults underground via tunnels. The Chinese could have just as easily demanded the HQ of other Wall Street banks. Instead, they were given the JPMorgan HQ as collateral, since it is the operating arm of the USFed itself.
With very high likelihood, conclude that China has taken control of the Federal Reserve, taken control of One Chase Plaza. Either the Federal Reserve has been shut down or purchased. Its lease expired in 2013, amidst much speculation. No story ensued on the contract continuation or other disposition. The Jackass believes China took the Fed by default force. Further evidence was seen at the Dallas Fed, where the US and Chinese flags were jointly flown until public complaints recently. The Chinese always prefer a low profile, especially when colonizing the United States. Next come industrial parks and vast commercial property purchase. Later comes the re-industrialization of the nation.
The biggest betrayal in modern history of any sovereign nation and its populace might have taken place last year. The USGovt defaulted apparently on the IRS tax stream bond held by China as collateral for the massive gold lease. The JPM HQ seizure is simply the visible portion on the asset seizure. The renege on returning leased Gold caused a trade war to commence back in 2007. Then the default on the IRS mortgage came last year, due to the powerful USEconomic recession.
The Wall Street controllers to the USGovt sold out the nation, effectively handing over sovereign control to China in a lost gold poker bet. That is precisely what appears to be the case. In the meantime, the Obama Admin seems particularly pre-occupied with amending the laws for treason as much and for gay marriage. He has vested interest in both, along with Clinton and Bush the Lesser. The clowns who decry terrorism the most are the architects and purveyors of treason. But hey! The Jackass is delusional and crackpot. No American leaders would steal Fort Knox for the national treasury (see Rubin, Bush, Clinton), and then hand over foreign direct investment to China with a gold lease (see same clan) secured by a pledge of income tax revenue on collateral. To do so would be a coordinated betrayal using the US corporate sector in an abandonment of the American workers. Methinks the Paradigm Shift eastward has had some significant lubrication in the moving hind parts.
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